Are Linden taxpayers becoming unwitting loan guarantors of loans taken out by the UCIA to bankroll projects by private developers?
The South Wood Avenue project is a major failure ... a project that now has no developer. If no developer comes forward and successfully completes the project, who is on deck for repayment of the bonds? We are. While properties targeted for that particular project have been bought by the UCIA, some have been demolished and others sit vacant for YEARS. We, the taxpayers, are responsible for the bonds (loans) used to bankroll that project, not to mention the eye-popping fees paid to the DeCoiitis law firm. In essence, we have become the guarantors of loans for which we have no control over. It’s one thing for a Municipality to issues bonds for capital purchases or improvements, but in this case, by naming the UCIA as the redevelopment agency, ONE person is making all the decisions, financial and otherwise. If we are unhappy with the progress or lack thereof, can we hold this person accountable by voting this person out of office? No, because this person isn’t even an elected official. She is the Executive Director of the Union County Improvement Authority and Chair of the Union County Democratic Party. I find her dual role as a power yielding political figure as well as the head of Improvement Authority disturbing for a number of reasons.
It begs the question why one person is allowed so much power? Even freeloader Sullivan admitted that the Union County Freeloader Board does not question the UCIA. Imagine that. One person in charge of tens of millions of dollars with little accountability. I carefully reviewed the minutes of the UCIA (thanks to the County Watchers site) and incredibly, there is no serious discussion or questioning by the UCIA trustees, or commissioners as they are called here. After a review of the names of the commissioners, it isn’t hard to figure out why this is so.
I am still gathering information on the Morning Star project which is another projected being bankrolled with our tax dollars. A drive by on St. George Avenue reveals not much going on there either. Assemblyman Green must be happy though. Almost a quarter of a million dollars for his dumps.
As a taxpayer, I am even more concerned of the intention of the UCIA and City to go forward with its plans to “take” the ISP property in Tremley. Remember, this entire plan was hatched under the Gregorio administration, even with the grand illusion of a NASCAR race track at one point. As with the botched South Wood Avenue project, this project will also be in the hands of the UCIA, or in reality, in the hands of Charlotte DeFillipo, the Union County Democratic Chairwoman. ISP was offered and rejected $25 million by the pet developer. If we are to continue with eminent domain, just what kind of money are we looking at here and how much will the UCIA end up paying it? The figure will probably be a lot higher than $25 million and that should be a real concern to the taxpayers, who, in effect, are the guarantors of the bonds that will be used to “take” ISP's property if this goes forward. Yet, there is no guarantee that the project will be a success or the taxpayers’ “investment” recouped.
These issues, IMO, are in the forefront of any issue confronting Linden at this time. Which candidates have the knowledge, ability and guts to fight for the taxpayers of Linden, even if it means taking on the UCIA? I doubt it will be any candidate backed by the Linden Democratic Club.
I think it’s time for our Mayor and council to take steps to see that the taxpayers aren’t made to become unwitting guarantors of loans for private developers any longer. That's what the NJ Economic Development Agency is for and that is where developers should be going to finance their projects ... not us.
Tuesday, October 28, 2008
Saturday, October 18, 2008
~ The Camelot Title - UCIA Investigation ~
It's been over a YEAR since the State A.G.'s office opened an investigation concerning the above, link provided below.
According to a recent news article, Suliga's widow stated that Joe Suliga founded the title agency. Others with a stake in Camelot are State Democratic Chair/Assemblyman, Joe Cryan, and County Democratic Chair, Charlotte DeFillipo. DeFillippo, who has referred to herself as a Cog on wheel, is the Executive Director of the Union County Improvement Authority who, as the County Chair, wields great power on who gets the nod to run for office in Union County. She also is in charge of all those UCIA projects.
In Rahway, Silon, the developer for the Skyview condominum/hotel, working with the Rahway Redevelopment Agency, has purchased properties from the Rahway Redevelopment Agency, to construct its condo/hotel. Not all the properties were bought outright by the developer from the RRA and under various agreements, Silcon pays the RRA back for the properties Silcon purchased from the RRA in different manners such as payments upon the units closing. In 2003, the RRA, through the UCIA, obtained bonds (financing). In essence, the RRA has acted as a lender to Silcon. On this particular project, Camelot Title, is the title agency for the developer Silcon.
The DeCoitiis law firm is the attorney for the RRA as well as the UCIA. It was reported that Assemblyman Joe Cryan, a stakeholder in Camelot, returned campaign money to the DeCoitiis law firm.
As far as I know, Suliga, DeFillipo nor Cryan are attorneys or licensed title agents. So what would possess them to get into the title business? I realize you don't need to be a cook to open a restaurant either.
Two years ago, Senator Lesniak, colleague to Assemblyman Joe Cryan with whom he shares a legislative office, crafted Bill No. 2229 which hasn't been brought forth for a vote. That bill would allow title agencies to offer "inducements" or discounts to persons purchasing title insurance. According to studies, as much as 60% or more of title insurance premiums are the agent's profit. If you are a politically connected title agent for big developers, you can well afford to offer discounts. If the Senator sponsored the bill because he thinks title agents make too much money off the premiums, the premiums, based on the dollar amount of insurance, can be re-evaluated and re-set set by the Commissioner of Banking and Insurance. Afterall, it is that agency's responsbility for overseeing the insurance industry. In this fashion, ALL title companies will be on an equal playing field.
U.S. Attorney Chris Christie doesn't mind State A.G. Annie Milgrim, appearing with him in photo ops. Maybe he should ask her for a peek into the files so his office can complete the investigation. He might want to get a hold of ex-Assemblyman Cohen's computer while he's at it.
Link to article on investigation:
http://www.nj.com/news/index.ssf/2007/11/ian_t_shearn.html
According to a recent news article, Suliga's widow stated that Joe Suliga founded the title agency. Others with a stake in Camelot are State Democratic Chair/Assemblyman, Joe Cryan, and County Democratic Chair, Charlotte DeFillipo. DeFillippo, who has referred to herself as a Cog on wheel, is the Executive Director of the Union County Improvement Authority who, as the County Chair, wields great power on who gets the nod to run for office in Union County. She also is in charge of all those UCIA projects.
In Rahway, Silon, the developer for the Skyview condominum/hotel, working with the Rahway Redevelopment Agency, has purchased properties from the Rahway Redevelopment Agency, to construct its condo/hotel. Not all the properties were bought outright by the developer from the RRA and under various agreements, Silcon pays the RRA back for the properties Silcon purchased from the RRA in different manners such as payments upon the units closing. In 2003, the RRA, through the UCIA, obtained bonds (financing). In essence, the RRA has acted as a lender to Silcon. On this particular project, Camelot Title, is the title agency for the developer Silcon.
The DeCoitiis law firm is the attorney for the RRA as well as the UCIA. It was reported that Assemblyman Joe Cryan, a stakeholder in Camelot, returned campaign money to the DeCoitiis law firm.
As far as I know, Suliga, DeFillipo nor Cryan are attorneys or licensed title agents. So what would possess them to get into the title business? I realize you don't need to be a cook to open a restaurant either.
Two years ago, Senator Lesniak, colleague to Assemblyman Joe Cryan with whom he shares a legislative office, crafted Bill No. 2229 which hasn't been brought forth for a vote. That bill would allow title agencies to offer "inducements" or discounts to persons purchasing title insurance. According to studies, as much as 60% or more of title insurance premiums are the agent's profit. If you are a politically connected title agent for big developers, you can well afford to offer discounts. If the Senator sponsored the bill because he thinks title agents make too much money off the premiums, the premiums, based on the dollar amount of insurance, can be re-evaluated and re-set set by the Commissioner of Banking and Insurance. Afterall, it is that agency's responsbility for overseeing the insurance industry. In this fashion, ALL title companies will be on an equal playing field.
U.S. Attorney Chris Christie doesn't mind State A.G. Annie Milgrim, appearing with him in photo ops. Maybe he should ask her for a peek into the files so his office can complete the investigation. He might want to get a hold of ex-Assemblyman Cohen's computer while he's at it.
Link to article on investigation:
http://www.nj.com/news/index.ssf/2007/11/ian_t_shearn.html
Friday, October 17, 2008
~Three Council Seats Up for Election~
Believe it or not, there are other election races, the results of which will probably have more of a direct impact on your wallet than the presidential race. Please remember as you gleefully select your next President that you do not have to vote down the party line.
There are 3 council seats up for election.
Does anyone know the position of the council candidates when it comes to pursuing eminent domain over ISP’s property?
The taxpayers are on the hook for $25 million for three new firehouses. The library construction is projected to be $7.6 million.
The taxpayers are on the hook for blocks and blocks of properties on South Wood Avenue that no one seems to want.
Is it a sound idea to continue efforts to seize ISP’s property? The politically connected developer, The Morris Company, offered ISP a paltry $25 million, which was rejected by ISP. Recent court decisions indicate that juries take these matters very seriously and lowball offers are tossed aside. If Linden, through its redeveloper agent, the UCIA, proceeds with this “taking”, the amount of money we, the taxpayers, would have to pay ISP is UNKNOWN.
These “new” debts are, of course, in addition to our “old” debt, the figure for which I do not have at this moment, but I've got to imagine it’s in the tens of millions. It would sure be nice if Linden’s 2008-2009 budget was on the City website, as well as council meeting minutes and agendas. Imagine having that kind of information at your fingertips? It’s a disgrace that it’s not available on the City website in this day and age of technology.
There are 3 council seats up for election.
Does anyone know the position of the council candidates when it comes to pursuing eminent domain over ISP’s property?
The taxpayers are on the hook for $25 million for three new firehouses. The library construction is projected to be $7.6 million.
The taxpayers are on the hook for blocks and blocks of properties on South Wood Avenue that no one seems to want.
Is it a sound idea to continue efforts to seize ISP’s property? The politically connected developer, The Morris Company, offered ISP a paltry $25 million, which was rejected by ISP. Recent court decisions indicate that juries take these matters very seriously and lowball offers are tossed aside. If Linden, through its redeveloper agent, the UCIA, proceeds with this “taking”, the amount of money we, the taxpayers, would have to pay ISP is UNKNOWN.
These “new” debts are, of course, in addition to our “old” debt, the figure for which I do not have at this moment, but I've got to imagine it’s in the tens of millions. It would sure be nice if Linden’s 2008-2009 budget was on the City website, as well as council meeting minutes and agendas. Imagine having that kind of information at your fingertips? It’s a disgrace that it’s not available on the City website in this day and age of technology.
Thursday, October 2, 2008
South Wood Avenue ~ The White Elephant?
If things couldn’t get any worse for the "Transit Village", they just did in recent weeks with the Wall Street and banking meltdown. The days of obtaining easy mortgages are over. It won’t be easy for developers to tap those sources any longer either.
Other indicators which don’t support a market for a retail/residential mixed use of the area include:
A soft real estate market. Look around the city and see the many homes up for sale and the lack of buyers.
Newer commercial buildings in town which are unable to attract tenants.
Empty stores on Wood Avenue which are unable attract retail businesses.
Rahway may have been in the forefront in its re-development plans of its downtown, but it’s my opinion that those efforts are now facing a downturn due to the current market conditions. Despite the initial outlook, many of the condominium projects are not sold out. One condominium project recently changed its plans from condos to rentals. Another project was significantly scaled back. Rahway has also failed to attract the much anticipated retail establishments for its downtown.
The redevelopment of South Wood Avenue got underway some 8 years ago and evolved into a "transit village" concept which relied on the locale of the train station to attract would-be NY commuters. The fallout from the Wall Street crisis may mean a great loss of jobs in New York, and elsewhere as well.
Perhaps it’s time to scale back our own re-development plans. Possibly Linden should focus on marketing one phase at a time, starting with the block that has already been demolished. It seems this project may be too big for Linden, the UCIA or any one developer in view today’s troubling economic times.
Maybe it’s time to start thinking "outside the transit village box" and perhaps find a way to cut the taxpayers’ losses now and get those UCIA issued bonds off the backs of the Linden taxpayers.
Verge/Valvano apparently figured this all out. When will we?
Other indicators which don’t support a market for a retail/residential mixed use of the area include:
A soft real estate market. Look around the city and see the many homes up for sale and the lack of buyers.
Newer commercial buildings in town which are unable to attract tenants.
Empty stores on Wood Avenue which are unable attract retail businesses.
Rahway may have been in the forefront in its re-development plans of its downtown, but it’s my opinion that those efforts are now facing a downturn due to the current market conditions. Despite the initial outlook, many of the condominium projects are not sold out. One condominium project recently changed its plans from condos to rentals. Another project was significantly scaled back. Rahway has also failed to attract the much anticipated retail establishments for its downtown.
The redevelopment of South Wood Avenue got underway some 8 years ago and evolved into a "transit village" concept which relied on the locale of the train station to attract would-be NY commuters. The fallout from the Wall Street crisis may mean a great loss of jobs in New York, and elsewhere as well.
Perhaps it’s time to scale back our own re-development plans. Possibly Linden should focus on marketing one phase at a time, starting with the block that has already been demolished. It seems this project may be too big for Linden, the UCIA or any one developer in view today’s troubling economic times.
Maybe it’s time to start thinking "outside the transit village box" and perhaps find a way to cut the taxpayers’ losses now and get those UCIA issued bonds off the backs of the Linden taxpayers.
Verge/Valvano apparently figured this all out. When will we?
Thursday, September 11, 2008
YOUR VOTE ~ DOES IT MATTER?
This year’s Presidential election seems to be causing quite a bit of hysteria here in the Soprano State, which is somewhat intriguing, but at the same time, puzzling to me for a number of reasons. A few observations.
First off, this is the one election where your vote counts the least, yet voters will arrive at the polls in droves as compared to other election days. NJ can only deliver 15 electoral votes to a Presidential candidate. By mentioning that fact, I, in no way, intend to diminish the importance of the office of the President or the importance of exercising your right to vote or to debate the worthiness of the candidates. As voter turnout is quite strong during a Presidential election, it further evidences the public’s seemingly strong desire to exercise its right to vote and select the candidate of its choice. On the other hand, many voters sit home on other election days, the days when your vote actually counts the most. This scenario is troublesome as well and I address some of those issue later in this post.
Regardless how you feel about the Presidential or Vice-Presidential candidates, and by the looks of things, many of you have VERY strong feelings one way or another, those candidates began their political careers at other levels of elected office holding, some of the very elections that many of you choose not to be bothered with during those political processes. Vice Presidential candidates, Joe Biden and Sarah Palin, both began their political careers as elected council members. As election results show, voter turnout is pretty poor unless it is a Presidential election. When you choose not to vote in local elections, remember that your next President, Governor, Congressman or Senator probably began his/her political career in a local election. Those who bypass serving the public at local levels, get their support not only from money, either their own or from political parties and supporters, but also receive support from political leaders and bosses, which you also play a role in selecting by voting or not voting.
By all accounts mentioned, I'm convinced NJ voters hold their right to select a President very dear. In fact, the evidence shows that many of you hold the Presidential election as the one election that you will not sit home and ignore your patriotic duty. But do you know that Governor Corzine and Senators Codey & Lesniak, along with many of their colleagues, feel very diffently? Do you know they want to take away your vote? That's right ... our elected officials of the official Soprano State don't trust you to vote properly. In fact, if our elected offcials have their way, NJ’s 15 electoral votes might even end up on talley sheet of the very candidate NJ voters did not select. The basic plan is for NJ 15 electoral votes to be delivered to the winner of the national popular vote, but only once enough states have entered into the arrangement to give the popular vote winner at least 270 electoral votes and the presidency. I don't like the plan for a number of reasons. Until such time as the Presidential election is nation-wide and uniformly switched from an Electoral College method to a Popular vote method, the current system of NJ's electoral votes being delivered to the very candidate WE selected should remain in place. I don't feel it is proper for Corzine, Lesniak, Codey and the rest of the Soprano State officials who have given approval to this plan to arbitrarily give away our vote.
Here in the Soprano State we have numerous officials who are either under investigation, indictment, on their way to jail or currently sitting in jail. Where is the outrage when one of our very own officials heads off to jail? You won’t hear any from our very own Governor. He makes pitiful statements such as "it’s disappointing" or "it’s sad" notwithstanding his promise to clean up corruption in NJ. If Governor Corzine was serious about cleaning up corruption, he would use those moments to harshly criticize public corruption, but he doesn’t. Therefore, I cannot take Governor Corzine seriously and apparently no one else does either as the corruption continues. I surely don't want him and the rest of the clowns in Trenton to decide where my vote should be delivered either. Do you?
First off, this is the one election where your vote counts the least, yet voters will arrive at the polls in droves as compared to other election days. NJ can only deliver 15 electoral votes to a Presidential candidate. By mentioning that fact, I, in no way, intend to diminish the importance of the office of the President or the importance of exercising your right to vote or to debate the worthiness of the candidates. As voter turnout is quite strong during a Presidential election, it further evidences the public’s seemingly strong desire to exercise its right to vote and select the candidate of its choice. On the other hand, many voters sit home on other election days, the days when your vote actually counts the most. This scenario is troublesome as well and I address some of those issue later in this post.
Regardless how you feel about the Presidential or Vice-Presidential candidates, and by the looks of things, many of you have VERY strong feelings one way or another, those candidates began their political careers at other levels of elected office holding, some of the very elections that many of you choose not to be bothered with during those political processes. Vice Presidential candidates, Joe Biden and Sarah Palin, both began their political careers as elected council members. As election results show, voter turnout is pretty poor unless it is a Presidential election. When you choose not to vote in local elections, remember that your next President, Governor, Congressman or Senator probably began his/her political career in a local election. Those who bypass serving the public at local levels, get their support not only from money, either their own or from political parties and supporters, but also receive support from political leaders and bosses, which you also play a role in selecting by voting or not voting.
By all accounts mentioned, I'm convinced NJ voters hold their right to select a President very dear. In fact, the evidence shows that many of you hold the Presidential election as the one election that you will not sit home and ignore your patriotic duty. But do you know that Governor Corzine and Senators Codey & Lesniak, along with many of their colleagues, feel very diffently? Do you know they want to take away your vote? That's right ... our elected officials of the official Soprano State don't trust you to vote properly. In fact, if our elected offcials have their way, NJ’s 15 electoral votes might even end up on talley sheet of the very candidate NJ voters did not select. The basic plan is for NJ 15 electoral votes to be delivered to the winner of the national popular vote, but only once enough states have entered into the arrangement to give the popular vote winner at least 270 electoral votes and the presidency. I don't like the plan for a number of reasons. Until such time as the Presidential election is nation-wide and uniformly switched from an Electoral College method to a Popular vote method, the current system of NJ's electoral votes being delivered to the very candidate WE selected should remain in place. I don't feel it is proper for Corzine, Lesniak, Codey and the rest of the Soprano State officials who have given approval to this plan to arbitrarily give away our vote.
Here in the Soprano State we have numerous officials who are either under investigation, indictment, on their way to jail or currently sitting in jail. Where is the outrage when one of our very own officials heads off to jail? You won’t hear any from our very own Governor. He makes pitiful statements such as "it’s disappointing" or "it’s sad" notwithstanding his promise to clean up corruption in NJ. If Governor Corzine was serious about cleaning up corruption, he would use those moments to harshly criticize public corruption, but he doesn’t. Therefore, I cannot take Governor Corzine seriously and apparently no one else does either as the corruption continues. I surely don't want him and the rest of the clowns in Trenton to decide where my vote should be delivered either. Do you?
Thursday, August 28, 2008
Here We Go Again ~ Another Lawsuit
Another lawsuit has been filed against the City and the UCIA (see link below). The Mayor is quoted as being "shocked" that the Linwood would take such action. I'm not. Who'd trust the UCIA, especially after its Executive Director, Charlotte DeFillipo, admitted to being a bully? You either do the bulling or get bullied according to the Cog. From where I'm standing, those aren't exactly comfort words and I bet the folks over at the Linwood aren't charmed by them either.
Let's hope this isn't going to turn into another long, drawn out eminent domain case. The Redevelopment Plan can simply be amended to remove the Linwood from the Plan. Surely this can be accomplished before the lawyers start making taxpayer funded entries on their timesheets?
As this project has dragged on for some EIGHT years, the lawyers' bills mount, construction costs have risen, and while interest rates remain low, mortgage lenders have made obtaining a loan more difficult. For the sake of the Linden taxpayers, I hope this project can one day be successfully completed. However, I think it will take a true professional to accomplish that goal.
http://www.mycentraljersey.com/apps/pbcs.dll/article?AID=/20080827/NEWS/808270374/1017/NEWS04
Let's hope this isn't going to turn into another long, drawn out eminent domain case. The Redevelopment Plan can simply be amended to remove the Linwood from the Plan. Surely this can be accomplished before the lawyers start making taxpayer funded entries on their timesheets?
As this project has dragged on for some EIGHT years, the lawyers' bills mount, construction costs have risen, and while interest rates remain low, mortgage lenders have made obtaining a loan more difficult. For the sake of the Linden taxpayers, I hope this project can one day be successfully completed. However, I think it will take a true professional to accomplish that goal.
http://www.mycentraljersey.com/apps/pbcs.dll/article?AID=/20080827/NEWS/808270374/1017/NEWS04
Tuesday, August 19, 2008
The South Wood Avenue Taxpayer Nightmare
Is what the “Transit Village” has turned into. On the nj.commie site, zeuss asks who will get the financial windfall? Only the lawyers who are lucky enough to do work for the County.
Further, it’s my understanding through another poster that the County/City lost its motion to terminate Verge.
Aside from the litigation and the failure to the UCIA to obtain ALL the properties it promised in its contract with Verge, it also appears that there are environmental issues that need remediation. Since money has been placed into an escrow for that purpose, it would seem that this is another contract dispute.
I can’t feel any sympathy for the Linwood. A lot of people know the REAL story behind that ... "things" just didn't work out as originally planned. From what I understand, everything is on "hold", including the Linwood issue, pending the outcome of the litigation which means the UCIA continues to breach the contract by not acquiring the properties the UCIA identified in the contract that would be part of the redevelopment project. One mess after another.
What can council do at this point? Linden is stuck in the middle while the litigation drags on. Construction prices are soaring, housing prices are falling and mortgage companies have tighten their lending practices ... a great recipe that can only mean this project is a complete disaster. I don’t have a copy of Linden’s Answer or Counterclaim, but what Linden should have done if it hasn't, was sue to have the incompetent UCIA removed as the redevelopment agency. This project has been going on for over 5 years and there is nothing to show for it, except an empty field, bond payments and lawyer fees. Too many on council are afraid to step on the toes of the Cog who also serves as the County Chair, including our own attorneys.
Further, it’s my understanding through another poster that the County/City lost its motion to terminate Verge.
Aside from the litigation and the failure to the UCIA to obtain ALL the properties it promised in its contract with Verge, it also appears that there are environmental issues that need remediation. Since money has been placed into an escrow for that purpose, it would seem that this is another contract dispute.
I can’t feel any sympathy for the Linwood. A lot of people know the REAL story behind that ... "things" just didn't work out as originally planned. From what I understand, everything is on "hold", including the Linwood issue, pending the outcome of the litigation which means the UCIA continues to breach the contract by not acquiring the properties the UCIA identified in the contract that would be part of the redevelopment project. One mess after another.
What can council do at this point? Linden is stuck in the middle while the litigation drags on. Construction prices are soaring, housing prices are falling and mortgage companies have tighten their lending practices ... a great recipe that can only mean this project is a complete disaster. I don’t have a copy of Linden’s Answer or Counterclaim, but what Linden should have done if it hasn't, was sue to have the incompetent UCIA removed as the redevelopment agency. This project has been going on for over 5 years and there is nothing to show for it, except an empty field, bond payments and lawyer fees. Too many on council are afraid to step on the toes of the Cog who also serves as the County Chair, including our own attorneys.
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